Desirable property affordable? Experiences?

From this perspective, buying counter-cyclically is not always the worst.

or you could come to terms with a terraced house or something similar?

Just a quick pro for terraced house: it’s great, no exaggerated land costs, offers everything you need and don’t need, and you don’t hear the neighbors. Except when they’re sitting in the garden.
Mostly the neighborhood is good. I really don’t understand what’s supposed to be worse about a terraced house compared to a detached house. Except for those few summer evenings when the neighbors barbecue. So what.
But you can still occasionally turn the electric guitar up to full volume without any further complaints.

Over time, a terraced house is probably significantly cheaper. The plots are smaller and often the houses are smaller than detached ones. Of course, there are exceptions.

Additionally, a terraced house is still the most ecological. Less access ways, smaller gardens, less consumption.

Here in the forum, there aren’t many representatives of terraced house fans. I’m rather the exception. Maybe I can take away your “fear” of inferior living. That’s nonsense. It’s a perfectly normal house without 3m distance all around. With enough light, mostly a good layout. I wouldn’t let that put me off.

The craftsmen are becoming more flexible again due to the burglaries at the new construction site, and the moon prices are going down. At least that's my experience here. Therefore, buying counter-cyclically is not always the worst. Of course, the property must still fit accordingly and offer the demanded purchase price in value (or ideally exceed it).

I just went through the purchase of an existing property in the current situation. Banks have become very cautious. However, I think that with a "good purchase" you can convince banks. Although I can understand your situation with the prime location...

But I don’t believe you will get an offer below 4 percent.

Fortunately, we have first-hand experience with this topic. We are currently living in an end terraced house rented and owning one is out of the question for us. Built too much upwards instead of outwards, too small for 2-3 children + a study, almost no storage space (without a basement), too dark, too close to the neighbors, garden too small. I have not yet seen terraced houses on the market that do not have these problems. But I do not want to start a fundamental discussion on this topic here. We can gladly spend a few more years in our rental house, but in the medium term, it should be a detached house.